## Testing for Normality

Your book discusses the Jarque-Bera test for normality which is computed using the skewness and kurtosis of the least squares residuals. To compute the Jarque-Bera statistic, you’ll first need to obtain the summary statistics from your data series.

From gretl script

1 open "@gretldirdatapoehip. gdt"

2 summary

You could also use the point and click method to get the summary statistics. This is accomplished from the output window of your regression. Simply highlight the hip series and then choose Data>Summary statistics>selected variables from the pull-down menu. This yields the results in Table C.1.

One thing to note, gretl reports excess kurtosis rather than kurtosis. The excess kurtosis is measured relative to that of the normal distribution which has kurtosis of three...

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